KEY STREAMS IN 2019–2020
The transformation programme for 2019–2020 was initiated by INTECO’s Board of Directors and developed and implemented by its key top managers. Practice-based initiatives were developed for all of INTECO’s functional divisions to transform the management framework and increase efficiency across their key activities. In 2020, the Company achieved most of the goals envisaged by the transformation programme.
KEY FOCUS AREAS OF THE TRANSFORMATION PROGRAMME IN 2019–2020
- Transforming our business model and processes
The updated business model is focused on the parts of the value chain that have the maximum impact on the Company’s capitalisation.
- In 2020, the Company fully adopted its target business model to focus on investment and development activities, with contractor services now outsourced.
- Regulations were put in pace for key production and supporting business processes.
- A product standard was developed and introduced for the target segments (from comfort to premium-class).
- A new organisational structure was developed and introduced in accordance with the transformed business model. The optimal headcount was achieved, with overlapping functions eliminated.
- The Company continues to actively transform its business processes. In 2020, it committed itself to improving its project management framework, introducing dynamic pricing, refining its product line-up, transforming its IT landscape and developing an IR function.
- Internal control processes were revised, with an Internal Control Department and Internal Audit Office established. The Company created a risk management framework and automated the relevant processes. A Risk Management and Internal Control Policy, Anti-Corruption Policy, and Code of Ethics were adopted.
- Managing development projects
In 2019–2020, the Company transformed its Management Framework for Development Projects. It is based on the following principles:
- Reliability. The Company always delivers on its obligations to customers, the shareholder, creditors and the government.
- A matrix structure. A matrix project management structure makes sure that managers report to both the respective project director (project reporting) and head of unit (administrative reporting).
- Aligned responsibilities and authority. A project director is responsible for the entire project (including achievement of target indicators) together with the working group and the Company’s management.
- Automation. We use cutting-edge systems (project management, BIM, CRM) to ensure robust design and accurate planning, improve sales and evaluate design solutions.
- A risk-oriented approach. Our risk management framework provides for prompt identification and assessment of risks that may affect the Company’s progress against targets.
- Regulations were put in place for the Implementation of a Development Project core process.
- Management bodies and a decision-making framework for projects were established, together with a Project Management Committee.
- Project management offices were reorganised into a responsibility centre.
- A complex system was developed to support project implementation at all stages, comprising three key complementary elements: a PM communication platform, Power BI, and BIM technologies for the design and management of digital building models.
- The communication platform helps manage projects, stores all relevant information, and makes it possible to draft reports and project schedules.
- Power BI analyses the Company’s activities by functional area in real time.
- The BIM environment is used to create digital models for projects based on complete and accurate information and optimise design solutions. In 2019–2020, it was successfully piloted during the construction of the Westerdam housing estate.
All business processes are now subject to comprehensive digitalisation to increase operational efficiency.
- The Company created a common IT landscape.
- The Bitrix integrated communication platform was introduced to assign and monitor tasks in all functional areas.
- The Company rolled out Power BI and Smartis for business intelligence.
- The share of automated customer interaction increased thanks to CRM technologies, LimeSurvey, and TechnoCad. We also switched to electronic registration of transactions.
- The Guacamole technology was used to enable the transition of our employees to remote work during the COVID-19 pandemic.
- External environment and communications
The Company seeks to ensure the full transparency of its activities, and the highest possible efficiency of its business processes. A key aspect of our comprehensive transformation, increased transparency is also in line with the Company’s goal to obtain a credit rating and issue bonds. INTECO is engaged an active dialogue with external stakeholders and investors to boost its investment appeal as a real estate developer.
- INTECO secured better media coverage to build a strong corporate image. The share of positive coverage increased from 16% to 53%, while the opposite indicator fell from 37% to 3%. In 2019, the Company was one of the most mentioned developers in the media.
- INTECO and its Sadovye Kvartaly project were rebranded, with projects launched in 2019–2020 receiving initial branding packages.
- The Company was actively involved in developing law-making initiatives to improve the conditions for the construction industry and address national goals related to the housing policy.
- The Company is guided by the principles of sustainable development and social responsibility. In 2020, INTECO implemented social and charity programmes to support hospitals, children with disabilities, hospices, veterans, and families of fatally injured construction workers. The Company raised funds for people who encountered troubles during the COVID-19 pandemic.
- We are committed to promoting education and contemporary art.
- Our competencies and team
The Company has set itself a goal of transforming its organisational and functional structure to improve efficiency, introduce a training framework for employees, refine its performance assessment practices, and put in place rewards and incentives aimed at furthering its strategic goals.
- A new organisational and functional structure was developed and subsequently approved by the Board of Directors.
- A new system of KPIs and incentives was put in place, with long-term incentives for top management based on KPIs linked to creating and increasing the Company’s long-term value.
- The Company set up a Nomination, Remuneration and Charity Committee.
- Onboarding procedures were introduced.
- Corporate communications and events were made more transparent, with their frequency and quality also improved.
The successful implementation of the transformation programme for 2019–2020 set the stage for the development of INTECO’s investment appeal programme for 2021–2023.